---
title: What’s happening in China?
description: Usually a source of growth, China dragged brands down in Q1.
---

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# [What’s happening in China?](https://hs-sbup.thehustle.co/news/05262022-brands-china)

 Written by [Jacob Cohen](https://hs-sbup.thehustle.co/news/author/jacob-cohen) | May 26, 2022 8:35:54 AM

In the US, April retail sales were up [8.2%](https://www.wsj.com/articles/chinas-covid-19-lockdowns-hurt-sales-of-starbucks-coffee-adidas-sneakers-11653476495?mod=mhp) from a year earlier. In China — not so much.

Strict covid lockdowns across major cities, where most malls and stores have been shut for months, led to an 11.1% YoY decline in April consumer spending there.

- **Starbucks,** with 5.4k locations in China, saw first quarter sales drop 23%. For **Adidas,** sales dropped 35%. **Hilton’s **fell 45%.

Earlier this week, **Airbnb** said it decided to [remove](https://www.cnbc.com/2022/05/23/airbnb-is-closing-its-domestic-business-in-china-sources-say.html) all mainland Chinese listings due to a lack of demand since its launch there in 2016. Certainly the pandemic wasn’t a big help.

But hotel operators are praying that think demand will rebound soon. Hilton, for instance, is opening 20% more rooms in China in 2022 than it did last year.

[View full post](https://hs-sbup.thehustle.co/news/05262022-brands-china)

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